COMPANY PRESENTATION - MEGAWIDE › wp-content › uploads › 2018 › 06 › ... · 23/05/2018 5 FY17 CONSOLIDATED INCOME STATEMENT In Php M FY 2017 FY 2016 Mov’t % Remarks Total

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COMPANY PRESENTATIONAs of 1Q 2018

DISCLAIMER

This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereofmay not be reproduced, disclosed or used without the prior written consent of Megawide Construction Corporation (the“Company”).

This presentation, as well as discussions arising therefrom, may contain statements relating to future expectations and/orprojections of the Company by its management team, with respect to the Company and its portfolio companies. Thesestatements are generally identified by forward-looking words such as “believe”, “plan”, “anticipate”, “continue”,“estimate”, “expect”, “may”, “will”, or other similar words. These statements are: (i) presented on the basis of currentassumptions which the company’s management team believes to be reasonable and presumed correct based onavailable data at the time these were made, (ii) based on assumptions regarding the Company’s present and futurebusiness strategies, and the environment in which it will operate in the future, (iii) a reflection of our current views withrespect to future events and not a guarantee of future performance, and (iv) subject to certain factors which may causesome or all of the assumptions not to occur or cause actual results to diverge significantly from those projected. Any andall forward looking statements made by the Company or any persons acting on its behalf are deemed qualified in theirentirety by these cautionary statements.

This presentation is solely for informational purposes and should in no way be construed as a solicitation or an offer tobuy or sell securities or related financial instruments of the Company and/or any of its subsidiaries and/or affiliates.

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OUR MILESTONES

3

TransportInfrastructure

COMPANY BACKGROUND

4

Residential IndustrialInfrastructure Office &Commercial

Engineering, Procurement & Construction

Progressive Property Development

Airport

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KEY INVESTMENT HIGHLIGHTS

Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomeratefocused in Construction and Infrastructure Development.

The Largest Building Construction Company in the Country

Largest Private Airport Operator in the Philippines

Progressive Property Developer in the CountryENGINEERING EXCELLENCE

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6

PHILIPPINES – A snap shot

International Tourists Arrival6.6M in 2017

11%

Population: 107.41* Median Age: 23.5**

Land Size: 300,000 sq.m

P8-9 TrillionInfrastructure Spending

(2017-2022)to account for 5% of GDP

* IMF (April 2018)** PSA*** BSP (Annualized)

US$ 3,162GDP per Capita

E2018*

GDP Growth6.7% in 20176.9% in 2016

US$ 28.1 BnOFW Remittances

in 2017

4.3%

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1Q18 CONSOLIDATED INCOME STATEMENTIn Php M 1Q 2018 1Q 2017 Mov’t % Remarks

Total Revenues 4,450 4,768 (318) (7%)

Construction 3,737 4,189 (452) (11%) Due to project timing

Airport Operations 646 570 76 13% 11% growth in passenger volume

Airport Merchandising 67 9 58 644%

Direct Costs 3,278 3,654 (376) (10%)

Construction 3,171 3,553 382 (11%)

Airport Operations 90 100 10 (10%)

Airport Merchandising 17 2 15 750%

Gross Profit 1,172 1,114 58 5%

Other Operating Expenses 282 266 16 6%

Operating Profit 889 847 42 5%

Other Income (Charges) (103) (163) 60 (37%)Due to decrease of sale of scrap and rental of equipment

Profit before tax 786 685 101 15%

Tax Expense 151 136 15 11% In line with profit before tax growth

Income before Non Controlling Interest 636 549 87 16% 34% of 2018 guidance

Non-Controlling Interest 160 109 51 47%

NIAT Attributable to MWIDE Equity Holders 476 440 35 8%

7

3,737 630

18,585

2,9741,301

Revenue EBITDA Net Income

CONSTRUCTION

38%

58%

4%NET INCOME

56%42%

2%EBITDA

1Q 2018 FINANCIAL HIGHLIGHTS

713 508 395

2,781

1,975

552


AIRPORT***

21,366

4,9491,853

4,450 1,138636


CONSOLIDATED+12%

+15%(18%)

(7%)+12%

16%

84%

15% 1%REVENUE

Construction

Airport

Merchandising

+11%

+15%+19%

+21%

+20%

(50%)

*In M Php** Changed in depreciation method from straightline to unit of production effective 1Q18***Includes airport merchandising

E20188

(11%)

+1%(13%)

+23%+29%

+45%

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FY17 CONSOLIDATED INCOME STATEMENTIn Php M FY 2017 FY 2016 Mov’t % Remarks

Total Revenues 19,159 17,658 1,501 9% Exceeded guidance growth of +6%

Construction 16,713 15,786 926 6% Exceeded guidance growth of +5%

Airport Operations 2,298 1,872 426 23% Exceeded guidance growth of +12%

Airport Merchandising 148 - 148 100%

Direct Costs 14,545 13,787 758 5%

Construction 14,084 13,426 658 5%

Airport Operations 420 361 59 16%

Airport Merchandising 41 - 41 100%

Gross Profit 4,614 3,871 743 19%

Other Operating Expenses 1,191 1,092 100 9%

Operating Profit 3,423 2,779 644 23%

Other Income (Charges) (596) (411) (185) 45% OTL on sale of retail Tbills; impairment loss

Profit before tax 2,827 2,368 459 19%

Tax Expense 579 448 131 29% Due to increase in profit

Income before Non Controlling Interest 2,248 1,920 328 17% Exceeded guidance growth of +13%

Non-Controlling Interest 467 361 106 29%

NIAT Attributable to MWIDE Equity Holders 1,781 1,559 222 14%

9

48%

50%2%

NET INCOME

FY 2017 FINANCIAL HIGHLIGHTS

16,713

2,5841,090


CONSTRUCTION2,446

1,705

1,158


AIRPORT**

19,159

4,289

2,248


CONSOLIDATED+9%

+19%

+17%

87%

12% 1%REVENUE

Construction

Airport

Merchandising

+6%

+12%+7%

+31%

+31%

+28%

*In M Php**Includes airport merchandising

61%

38% 1%EBITDA

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MARGIN PERFORMANCE

In Php Million 1Q 2018 1Q 2017 FY 2017 FY 2016

Gross Profit Margin 26% 23% 24% 22%

Construction 15% 15% 16% 15%

Airport Operations 86% 82% 82% 81%

Airport Merchandising 75% 80% 72% -

EBITDA Margin 26% 21% 22% 20%




Net Income Margin 14% 12% 12% 11%




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FINANCIAL POSITION

In Php M 31-Mar-18 31-Dec-17 Movement % Change

Cash & Financial Assets 7,842 8,140 (298) (4%)

Other Current Assets 11,638 10,559 1,079 10%

Total Current Assets 19,480 18,699 781 4%

Concession Assets 26,931 25,608 1,323 5%

Total Non Current Assets 37,426 35,719 1,707 5%

Total Assets 56,906 54,418 2,488 5%

Current Liabilities 11,220 9,413 1,807 19%

Non Current Liabilities 26,993 26,869 124 0.5%

Total Liabilities 38,213 36,282 1,931 5%

Equity 18,693 18,136 557 3%

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LIQUIDITY AND GEARING RATIOS

17%9% 7%

0.35

21%

10% 9%

0.41

22%

11% 12%

0.57

24%

12% 13%

0.70

26%

14% 14%*

0.76*

Gross Profit Margin Net Profit Margin Return on Equity Earnings per Share

PROFITABILITY RATIOS2014 2015 2016 2017 1Q18

0.900.67

1.78

1.35

1.83

1.38

1.99

1.561.74

1.38

Current Ratio Quick Ratio

LIQUIDITY RATIOS

1.290.77

6.36

1.36 0.80

4.39

1.590.91

4.11

1.601.15

4.85

1.551.13

4.64*

Gross Debt to Equity Net Debt to Equity Ratio Net Debt to EBITDA

SOLVENCY RATIOS

* Annualized** Interest Bearing loans: FY16 - P25.8bn FY17 - P28.9bn

1Q17 - P28.9bn 1Q18 - P29.0bn *** Net debt: FY16 - P14.8bn FY17 - P20.8bn

1Q17 – P15.3bn 1Q18 - P21.1bn13

THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY

TAYTAY PRECAST FACILITY

Location Taytay, Rizal

Operational since September 2012

Land Area About 71,000 sqm. (footprint)

Production Area 17,000 sqm.

Max Production About 108,000 cu.m. per year Capacity: About 9,000 cu.m. per month

• Most advanced pre-cast construction facility in Asia• Largest fully computerized and automated Batching Plants in the Philippines• Innovative formworks system from Germany• Young and modern fleet of equipment

The Megawide Engineering Excellence

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THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY

Megawide is a Quadruple A PCAB Licensed general contractor primarily engaged in civil, structural and architectural works, MEPF, and other specialty engineering services.

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THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY1

PPP for School Infrastructure

Project 1, 2

Phase 1 Developer

Citicore-MegawideConsortium, Inc.

Location Region III and IVA

Agreement Build-Lease-Transfer

Duration 10 Years

Phase 2 Developer

Megawide ConstructionCorporation

Location Regions I, II, III, CAR

Agreement Build-Transfer

Contract Cost Php 15.06 B (combined)

Southwest Intermodal

Transport Exchange

Developer MWM Terminals

LocationCavite Expressway, Paranaque City

Agreement Build-Transfer-Operate

Duration 35 Years

Project Cost Php 3.5 B

Mactan-Cebu

International Airport

DeveloperGMR-Megawide CebuAirport Corporation

LocationAirport Road, Lapu-Lapu City

Agreement Build-Operate- Transfer

Duration 25 Years

Project Cost Php 34 B

Upward integration from construction to concession asset operations enables

Megawide to participate in PPPs and Infrastructure Development as a

Quadruple A project contractor or as a contractor + operator to generate

stable, recurring revenues.

PPP Projects won during the Aquino Administration

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17

7,742 8,205

10,8809,842

13,958

15,78616,713

18,585

14.2% 17.0% 16.4% 16.2% 15.0% 15.0% 16.0%

9.7%12.3%

12.9%8.4%

7.0% 6.4% 7.0%

-1,000

4,000

9,000

14,000

19,000

2.0%

7.0%

12.0%

17.0%

22.0%

27.0%

32.0%

2011 2012 2013 2014 2015 2016 2017 E2018

Construction Revenues (in M Php)

Revenue

GP Margin

Net Income Margin

+6%+11%

750

1,013 1,092

838973 1,017 1,090

1,301

2011 2012 2013 2014 2015 2016 2017 E2018

Construction Income (in M Php)+19%

* 2015 Expiration of ITH

+7%

3,737-11%

241

-13%

5.5

4.23.73.7 4.1

3.2

4.1

3.4

4.3

2016 2017 2018

Quarterly Revenues (in Bn Php) Q1 Q2 Q3 Q4

386

276241

311 314

158

293

163207

2016 2017 2018

Quarterly Net Income (in M Php) Q1 Q2 Q3 Q4

-24%

-11%+11%+31%+24%

-28% 1% 86%

27%-13%

14.10 12.42

17.60

37.73

12.73 10.8213.34

2012 2013 2014 2015 2016 2017 1Q18

NEW CONTRACTS(in Php Bn)

18.8020.30

22.63

39.06 38.49

32.60

41.93

2012 2013 2014 2015 2016 2017 1Q18

ORDER BOOK(in Php Bn) Office &

Comm'l29%

Infra16%Residential

55%

ORDER BOOK MIX 1Q18

Office & Comm'l

23%

Infra8%

Residential69%

ORDER BOOK MIX 1Q17


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THE LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES2

On April 22, 2014 the Company and its JV Partner GMR won the Concession for brownfield development of Mactan-CebuInternational Airport under Build-Operate-Transfer Modality. Concession Period is 25-years.

Mactan-Cebu International Airport is the 2nd Largest Gateway in the Philippines (next to NAIA). The Company took over the Operations and Maintenance of the Airport last November 1, 2014 Construction broke ground last June 30, 2015 for the construction of the new Terminal 2. Terminal 2 aims to increase

passenger handling capacity from 4.5M to 12.5M per annum. Target completion is in June 2018. (6 mos ahead of schedule)

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25 PARTNER AIRLINE CARRIERS 8 Local 17 International

22

31

32

108


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5.2 5.9 6.4 6.8 7.6 8.4 9.1 9.9 10.6 11.5 14.2

17.2 20.2

1.7 2.0 2.5 3.1 3.7

4.3 4.9

5.4 5.7

6.0

7.5

9.0

10.2

6.9 8.0 8.9 9.9

11.3 12.7

14.0 15.3 16.3

17.5

21.7

26.2

30.4 Passenger Traffic(In Million)

Domestic Int'l

FY Air Traffic Volume2016 2017 % Increase

Domestic 56,210 65,300 16%International 16,383 21,300 30%Total 72,593 86,600 19%

FY Passenger Volume Growth 2016 2017 % Increase

Domestic 6.38 6.84 7%International 2.52 3.13 24%Total 8.89 9.97 12%

7.4

51.2 56.2 65.380.9 87.1 89.8 91.7 97.4 102.6

120.2 137.9

153.6

2.0

13.816.4

21.3

24.5 25.0 26.5 27.7

27.8 28.0

32.0

36.1

39.4

9.4

65.0 72.6

86.6

105.3 112.1 116.3 119.4

125.2 130.6

152.2

174.0

193.0 Air Traffic

(in ‘000)Domestic Int'l


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1Q Air Traffic Volume2017 2018 % Increase

Domestic 15,081 18,458 22%International 5,191 5,975 15%Total 20,272 24,433 21%

1Q Passenger Volume Growth 2017 2018 % Increase

Domestic 1.60 1.76 10%International 0.83 0.95 14%Total 2.44 2.71 11%


•Euromoney-IJGlobalAsia Pacific PPP Deal of the Year

•The Asset Triple A Infrastructure Awards Best Transport Deal – Highly Commended

•Project Finance International Asia Pacific Transport Deal of the Year

AWARDS

•Guide to Sleeping in Airports 18th Best Airport in Asia

•Partnerships Awards International •Shortlist for Best Transit Project

2014

2015

•CAPA Best Regional Airport in Asia Pacific•Sleeping in Airports 14th Best Airport in Asia •Routes Asia 2016 shortlisted for Marketing Award•World 2016 shortlisted for Marketing Award

2016

2017•Routes Asia 2017Shortlisted for Marketing + Commendation for Excellence in Airline Marketing

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131

9771,108

1,280

42

339

532

723

26

168

232

295

2014 2015 2016 2017

AIRPORT REVENUEIn Php M

AERO

NON-AER0

PSC

1,872

1,484

200

+57%

+13%

+26%

+36%

+16%

+27%2,298+23%

+38%


FINANCIAL RATIOS 2015 2016 2017

Current Ratio 0.4 1.3 1.0

Gross Debt to Equity 2.5 2.6 2.7

Net Debt to Equity 2.5 2.3 2.5

Gross Debt to EBITDA 14.4 13.0 12.4

Return on Equity 9% 15% 16%

Passenger Service Charge (PSC)

1st Step-Up: Effective June 2015Domestic – from P200 to P300International – from P550 to P750

Aero RelatedAircraft service charges – fees collected from airlines for the payment for aero bridges, ground handling, fuel, etc.

Non-aeroRental revenues from concession tenants such and Retail. Also includes advertising, car parking and other rental revenues

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431465 483 493

570 586 568 575646*

Q1 Q2 Q3 Q4

QUARTERLY REVENUE(in Php M) 2016 2017 2018

+32% +26% +17% +17%+13%

* excludes airport merchandising revenues of P67M


$4

2015

Expanding Retail Stores Exciting Food & Beverage Outlets

Growth in Sales per Passenger

$6

2016 $2

2014

Since handover, T1 leasable space has increased by 38.5% and is expected

to further increase upon completion of Terminal 2.

1Q 2018 Revenue Mix

$8

2017

AERO RELATED

12%

NON-AERO33%

PSC55%

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90

971

1,302

1,641

2014 2015 2016 2017

AIRPORT EBITDAIn Php M

+26%

49

501

9031,115

2014 2015 2016 2017

AIRPORT NET INCOMEIn Php M

45%

48%

65%

25%

34%

Margin

Margin

70%

71%

+24%

49%


25

285

329368

320

389420 433

399

481*

Q1 Q2 Q3 Q4

Quarterly EBITDA(in Php M)

2016 2017 2018

187

294 274

148

271 280 260304

370*

Q1 Q2 Q3 Q4

Quarterly Income(in Php M)

2016 2017 2018

+36%

+44%

+28%

-5%

+23%

-5%

+25%

+105%

+23%

+37%

* excludes airport merchandising EBITDA of P27M and NI of P25M** change in depreciation method from straightline to UOP effective 1Q18

Domestic65%

International35%

Domestic66%

International34%

Passenger Mix

1Q 2017 1Q 2018

EU: UK, Germany & France

Breakdown of International Tourists 2016

Korea 48%

Japan 21%

USA 10%

China 7%Australia 3%

EU, 4%Taiwan 2% Others 5%

1.0 1.6 2.2

5.4 6.7

8.1

2015 2017E 2019ECebu Int'l arrivals (Mn) Other Ph Int'l arrivals (Mn)

% of Cebu Int’l Arrivals to Total PH Int’l Arrivals


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P16.4BnBid

Premium

P11.0BnTerminal 2

P6.6BnCapacity Augmentation

TOTAL PROJECT COST

P34.0Bn

June 2015:Start of

Construction

May-June 2018:Trial Run

Apr-May 2018:Construction Completion

June 2018:Ready for

Operations

38,483 38,483 42,541 42,541

62,315 62,315 62,315

19,970

2014-2017 E2018 E2019-2023 E2024

TOTAL TERMINAL AREA (in sqm)

Capacity AugmentationT2T1

124,826

104,856100,798

38,483

2,888 2,888 2,888 2,888

3,670 3,670

2016 2017E 2018E 2019E

RETAIL GLA (in sqm)

T2

T1

6,5586,558

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Details of new routes/frequency in 2016

Airline Destination Start Date Aircraft/Frequency

INTERNATIONAL

PAL Los Angeles March-16 A340/3x

Eva Air Taipei March-16 A321/B777/7x

Xiamen Air Xiamen March-16 B737/3x

Emirates Dubai May-16 B777/7x

China Eastern Chengdu Sept-16 A319/A320/4x

Air Asia Singapore Nov-16 A320/4x

Air Asia Taipei Nov-16 A320/3x

PAL Singapore Dec-16 A321/4x

T’way Daegu Dec-16 B737/5x

Vanilla Air Narita Dec-16 A320/7x

DOMESTIC

PAL Kalibo Dec-16 A320/3x

PAL Caticlan Dec-16 B400/7x

Cebu Pacific Ormoc Nov-16 ATR-72/7x

Cebu Pacific Calbayog Nov-16 ATR-72/4x

Cebu Pacific Roxas Nov-16 ATR-72/7x

Growing routes and frequency

8 new international routes 5 new domestic routes 7 new airlines

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INTERNATIONAL

Xiamen Airlines Fuzhuo April 18 B738/2

PAL Chengdu Jan 16 A321/3

Sichuan Airlines Chongqing Mar 28 A321/4

Lucky Air Kunming June 1 B737-800/3

AirAsia Kuala Lumpur July 15 A320

China Eastern Shanghai Oct 18 A320/7*

Juneyao Airlines Shanghai Oct 31 A321/3

Okay Airways Xi’an Oct 31 B737-800/3

PAL Beijing Nov 26 A320/1

PAL Bangkok Dec 2 A320/3

Pan Pacific Muan Dec 9 A320/2

Pan Pacific Incheon Dec 10 A320/7



DOMESTIC

PAL Clark March 26 A321/3

PAL General Santos March 26 A320/7

PAL Puerto Princesa March 26 A321/7

PAL Busuanga March 26 Q400/7

PAL Surigao March 26 Q400/7

PAL Butuan March 26 A320/7

Air Asia Davao April 22 A320/7

Air Asia Puerto Princesa April 22 A320/7

Cebu Pacific Busuanga May 15 ATR500/3

Cebu Pacific Cotabato May 16 ATR500/4

Air Asia Kalibo June 19 A320/7

AirJuan Tagbilaran June 19 Cessna Caravan

AirJuan Bantayan June 19 Cessna Caravan

AirJuan Biliran June 19 Cessna Caravan

AirJuan Siquijor June 19 Cessna Caravan

PAL Tagbilaran June 22 A320

Cebu Pacific Masbate July 26 ATR-500

Air Juan Maasin Aug 1 Cessna Caravan/2

Air Juan Sipalay Aug 2 Cessna Caravan/2

PAL Camiguin Dec 1 Q400/7

PAL Siargao Dec 1 Q400/7

PAL Legazpi Dec 1 Q400/7

PAL Ozamiz Dec 1 Q400/7

*Daily/effective 18-28 Oct then resumes 18Jan18 onwards



INTERNATIONAL

China Eastern Guangzhou Jan 20 A320/2

Pan Pacific Pusan Feb 15 A320/2

Air Asia Shenzhen May 09 A320/3

DOMESTIC

Air Juan Ormoc Mar 15 Cessna Caravan/2

Air Juan Catbalogan Mar 19 Cessna Caravan/2

Air Asia Clark May 11 A320/7


29

PROGRESSIVE PROPERTY TRANSPORT DEVELOPER3

Paranaque Integrated Transport Exchange

The Paranaque Integrated Transport Exchange (PITX) will commence terminal and retail operations by 3Q 2018 whilefull recurring income base from (4) office towers by end-2019.

717.21

1,136.671,189.38

437.50

716.10773.10

E2019 E2020 E2021

Lease Revenues EBITDA

61%

63%65%

EBITDA Margin

In M Php

30

P5.3 B

June 30, 2018Opening Date

23/05/2018

16

2018 GUIDANCE

887

1,474

1,920

2,248

636

1,853

2014 2015 2016 2017 E2018

NET INCOME*

1,859

3,030

3,611

4,289

1,136

4,949

2014 2015 2016 2017 E2018

EBITDA

10,042

15,442

17,65819,159

4,450

21,366

2014 2015 2016 2017 E2018

REVENUES

+17%

+30%

+14%

+54% +66%

+19%

+19%

+63%

*includes minority interestE20181Q18

+9%

+12%+15%

(18%)

(In M Php)

31

200

1,484

1,872

2,298

2,781

90

971

1,302

1,641 1,975

49

501

903 1,115

552

061218243036424854606672788490961021081141201261321381441501561621681741801861921982042102162222282342402462522582642702762822882943003063123183243303363423483543603663723783843903964024084144204264324384444504564624684744804864924985045105165225285345405465525585645705765825885946006066126186246306366426486546606666726786846906967027087147207267327387447507567627687747807867927988048108168228288348408468528588648708768828888949009069129189249309369429489549609669729789849909961,0021,0081,0141,0201,0261,0321,0381,0441,0501,0561,0621,0681,0741,0801,0861,0921,0981,1041,1101,1161,1221,1281,1341,1401,1461,1521,1581,1641,1701,1761,1821,1881,1941,2001,2061,2121,2181,2241,2301,2361,2421,2481,2541,2601,2661,2721,2781,2841,2901,2961,3021,3081,3141,3201,3261,3321,3381,3441,3501,3561,3621,3681,3741,3801,3861,3921,3981,4041,4101,4161,4221,4281,4341,4401,4461,4521,4581,4641,4701,4761,4821,4881,4941,5001,5061,5121,5181,5241,5301,5361,5421,5481,5541,5601,5661,5721,5781,5841,5901,5961,6021,6081,6141,6201,6261,6321,6381,6441,6501,6561,6621,6681,6741,6801,6861,6921,6981,7041,7101,7161,7221,7281,7341,7401,7461,7521,7581,7641,7701,7761,7821,7881,7941,8001,8061,8121,8181,8241,8301,8361,8421,8481,8541,8601,8661,8721,8781,8841,8901,8961,9021,9081,9141,9201,9261,9321,9381,9441,9501,9561,9621,9681,9741,9801,9861,9921,9982,0042,0102,0162,0222,0282,0342,0402,0462,0522,0582,0642,0702,0762,0822,0882,0942,1002,1062,1122,1182,1242,1302,1362,1422,1482,1542,1602,1662,1722,1782,1842,1902,1962,2022,2082,2142,2202,2262,2322,2382,2442,2502,2562,2622,2682,2742,2802,2862,2922,2982,3042,3102,3162,3222,3282,3342,3402,3462,3522,3582,3642,3702,3762,3822,3882,3942,4002,4062,4122,4182,4242,4302,4362,4422,4482,4542,4602,4662,4722,4782,4842,4902,4962,5022,5082,5142,5202,5262,5322,5382,5442,5502,5562,5622,5682,5742,5802,5862,5922,5982,6042,6102,6162,6222,6282,6342,6402,6462,6522,6582,6642,6702,6762,6822,6882,6942,7002,7062,7122,7182,7242,7302,7362,7422,7482,7542,7602,7662,7722,7782,7842,7902,7962,8022,8082,8142,8202,8262,8322,8382,8442,8502,8562,8622,8682,8742,8802,8862,8922,8982,9042,9102,9162,9222,9282,9342,9402,9462,9522,9582,9642,9702,9762,9822,9882,9943,000

2014 2015 2016 2017 E2018

AIRPORT*

2018 SEGMENT GUIDANCE

9,842

13,958

15,78616,713

18,585

1,7692,059

2,300

2,584 2,974

838 9731,017 1,090

1,301

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

16,000

17,000

18,000

19,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2014 2015 2016 2017 E2018

CONSTRUCTIONRevenue

EBITDA

Net Income

+642%

+26%

+23%

+6%

+42%

+13%

+24%

+26%

+7%

+12%

In M Php

P24bn new contracts for 2018, including Clark EPC of P4.7bn

EBITDA to grow while NIAT to contract due to recognition of dep’n and interest expense with the opening of T2 by June 2018

+11%

+15%

+19%

+21%

+20%

(50%)

* Excludes Airport Merchandising

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HISTORICAL CORE EARNINGS PER SHARE (EPS)0.36 0.48 0.48 0.35 0.41

0.57 0.70

2011 2012 2013 2014 2015 2016 2017

Dividend Payout HistoryRecord Date Type Amount Date of Payment

October 14, 2011 Common Shares P257,100,001.00 November 10, 2011

July 20, 2012 Cash P150,024,528.20 August 15, 2012

July 19, 2013 Stock P380,636,801.00 August 14, 2013

October 22, 2014 Stock P750,000,000.00 November 17, 2014

February 27, 2015 Preferred Shares P70,250,000.00 March 3, 2015

May 8, 2015 Preferred Shares P70,250,000.00 June 3, 2015

August 6, 2015 Preferred Shares P70,250,000.00 September 3, 2015

November 6, 2015 Preferred Shares P70,250,000.00 December 3, 2015





March 1, 2017 Preferred Shares P70,250,000.00 March 3, 2017




December 26, 2017 Common Shares P106,928,874.85 December 29, 2017



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CLARK INTERNATIONAL AIRPORT (Hybrid PPP)

35

Engineering Procurement & Construction Operations and Maintenance (O&M)

Construction of new building terminal to accommodate 8 mppa

Contract Cost: P9.36 Billion 50-50 JV with GMR PPP Structure: Build-and-Transfer (BT) Construction Period: Dec 2017 – 1Q 2020 Payment Terms based on three milestones:

Upon completion of:1. the shell of the new building terminal2. the landside facilities3. the remaining balance of work

involves the O&M of the existing and the proposed new passenger terminal buildings, excluding airside facilities and air traffic control

Implementing Agency: DOT & BCDA Indicative Cost: P5.16 Billion PPP Structure: O&M 25-year concession BCDA expects to receive:

1. the following amounts equivalent to P10Bn in 10 tranches as follows: 2019-2021 (P1Bn/yr); 2024-2030 (P1Bn/yr)

2. a percentage share of gross revenue in quarterly payments (bid parameter)

Bid Submission: 20 July 2018 Contract Award & Signing: 30 August 2018

MCIA Expansion Project (Unsolicited Proposal)

Submitted last 07 June 2017 Investment: P208 billion (US$4 billion) Three Main Phases:

1. Takeover airside facility and subsequently undertake the following:

a. rehabilitation of the existing runway and taxiways

b. construction of an additional full length parallel taxiway

c. development of additional rapid exit taxiways and runway holding

positions2. Construction of a second parallel and

independent runway3. Construction of Terminal 3

Original Proponent Status Awaiting NEDA approval

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NAIA Rehabilitation Project (Unsolicited Proposal)

Megawide-GMR Proposal

Project Cost P150Bn

Concession Period 18 Years

Technical Partner Mitre Corporation

3rd Runway Not viable

Passenger Volume in 4 years 72 mppa

Aircraft movement/hr 40-60

Infrastructure Plan

1. Improve airside capacity and implement terminal improvements

2. Introduction of key performance measures

3. Building future capacity

37

In October 2015, the Consortium of East West Rail Corporation (EWRC) and Alloy MTD (Alloy) made an unsolicited proposal for undertaking the East West Transit Rail Project, which is a 9.7 km railway line in Metro Manila.

On 27th March, 2017, Megawide entered into an Investment Agreement with EWRTC to acquire 60% stake in the consortium.

The project is subdivided into two components: Build-Transfer (BT) for the construction, civil

works and electromechanical systems; and Build-Operate-Transfer (BOT) for the

operations & management (O&M) for 30 years.

Stations Type Connecting Network

Lerma Elevated LRT-1, LRT-2

UST Elevated

Antipolo Elevated PNR

Welcome Rotonda Elevated

Banawe Elevated

G. Araneta Elevated

Roces Elevated

Timog Elevated

EDSA Underground

Quezon Memorial Underground MRT-3

University Avenue Underground MRT-7

PNR EAST WEST RAIL PROJECT (Unsolicited Proposal)

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BUSINESS CATALYSTS

The continued stability of the Philippines, coupled with the new Duterte Administration willfurther give Megawide a foundation for future growth.

Increase In

Government

Infrastructure

Spending

$30Bn OFW

Remittance and

4.65Mn Housing

Backlog

BPO Sector’s

continued growth

Demand for Office

Building contracts

39

SUMMARY

The Largest Building Construction Company in the Country - preferred contractor of blue chip companies

Largest Private Airport Operator in the Philippines - leading position for bidding for new airports

Progressive Property Developer in the Country- develop mixed-use anchored on infrastructure

Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused inConstruction and Infrastructure Development with four core business segments:

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Documents

COMPANY PRESENTATION - MEGAWIDE › wp-content › uploads › 2018 › 06 › ... · 23/05/2018 5 FY17 CONSOLIDATED INCOME STATEMENT In Php M FY 2017 FY 2016 Mov’t % Remarks Total